Cultivating Success: The Impact of Business Brokers on Closing Rates

Business brokers and M&A advisors consistently improve closing rates. There are many reasons why this is the case and, in this article, we’ll explore some of the top reasons why brokerage professionals get results. When it comes to selling a business, few variables are as important as how your business is presented. A key area of expertise for business brokers is in presenting businesses. There are many factors to consider when presenting your business in the best possible light. An experienced business broker can help you prepare your business for even the most discerning buyer. Another key reason that business brokers are a great option for any seller is that they reach not only more buyers, but more qualified buyers. Brokerage professionals have years of experience in buying and selling businesses, and with that experience comes a long list of vetted buyers. When you start working together, they likely already have many qualified buyers in mind that they feel would be a … [Read more...]

Strategies for Maximizing Market Dominance: Key Steps to Boosting Business Value

At some point, you will need to sell your business. When the time comes to put your business on the market, it is in your best interest if your business has a dominant position in the market. Potential buyers will be far less excited about your business if you are playing catch-up to one or more competitors. In the end, maintaining a dominant market position will help you receive both maximum interest and top dollar for your business. Take Steps in Advance Preparing your business to be sold isn’t something that you do overnight. Instead, preparing your business for sale is a process that can take years of meticulous planning. Operating your business as though you will need to sell it soon is always a smart strategy. Boost Your Customer Base A key part of maintaining a dominant position in your market is to have a large number of customers. The logic is simple: if you have a large number of customers, then it only makes sense that your competitors have fewer customers.  A prospective … [Read more...]

The Emotional Side of Selling Your Business

It is easy to get lost in the numbers when it comes to selling your business, but it is important to remember that the numbers only tell one side of the story. Both buying and selling a business come with significant mental and emotional ramifications.  Why is this so critical to understand? Sellers who are not emotionally ready might subconsciously take steps to interfere with the sales process. Typically, sellers have invested a great deal of time and effort into their business, and as a result, they may simply not be truly ready to sell. Before the day comes to put your business up for sale, pause and reflect on whether you are 100% onboard.  Let’s take a look at some of the questions to ask yourself so that you can decide if you are truly ready to sell. Do You Have Future Plans?  Topping the list of emotional factors that you need to consider when selling are your plans for the future. If you don’t know what your plans are for after selling your business, you may encounter … [Read more...]

What Should You Expect from Your Business Intermediary?

Eventually every business owner needs to sell or think about who will take over their business when they retire. Working with an intermediary is an easy and streamlined way to jumpstart the process and learn what mistakes to avoid. A business broker or M&A advisor can help you to understand what steps to take to achieve optimal results.  Teamwork Makes the Dream Work First, it is simply critical to understand that selling a business is a team effort. No seller should begin working with an intermediary with the idea that the intermediary will do “all the work.” The reality is that in order to achieve a successful sale, it is necessary for the seller and the intermediary to work closely and engage in a good deal of communication.  Other key people such as executives and advisors will also have to work closely with your business broker or M&A advisor. Without a doubt, selling a business is a group effort that will need cooperation from many parties. For example, you’ll also need … [Read more...]

How to Save a Deal

Few business owners truly understand the complex dynamics of making a deal. Having never participated in selling a business before, the majority of business owners are blissfully unaware of what it takes to turn the dream of selling a business into a reality. Having a brokerage professional by their side is an easy way for a business owner to avoid the dangers that can easily torpedo a deal. Keep Your Eye on the Ball One of the most common reasons that businesses will fail to sell is that the business owner becomes obsessed with the pending transaction, and in the process, fails to keep up with the day-to-day operations of the business. The sales process can take months, or even years, and that means that the owner needs to pay attention to every aspect of their business or a prospective buyer could become very concerned. Keep Confidentiality a Top Priority  Another mistake that business owners can make, one that will quickly kill a deal, is a breach of confidentiality. If the sales … [Read more...]

How Business Owners Can Leverage AI

Artificial Intelligence has certainly received more than a bit of attention in the last two years. It’s no wonder that many business owners wonder how best to use this tool to gain an edge over the competition. Currently, the cost of ChatGPT-4 is only $20 per month, which is a very nominal cost considering its capabilities. For that cost, users gain access to a powerful large language model or LLM. ChatGPT-4 allows users to put in a prompt and quickly receive an answer. Since ChatGPT-4 is a neural network, it is possible for you to customize how data is generated.  An AI Virtual Assistant? Almost anyone can appreciate the benefits a virtual assistant can bring. With ChatGPT-4, it is possible to use the technology as a digital VA that can simulate the work you might otherwise need to hire people to do. AI tools have become better and better at providing pinpointed information. More and more, business owners are viewing artificial intelligence as a tool that can serve the function of a … [Read more...]

Options for Family Owned Businesses

If you own a family-owned business, you may feel as though there are more factors to consider when it’s time to sell. In this article, we’ll examine some of the best options that business owners can use. You’ll want to keep in mind that both internal and external strategies are available to you. Let’s take a closer look.  3 Types of Internal Transactions  One of the top options for selling a family-owned business is to simply transition the ownership of the business within the family. This is an often-exercised option for many reasons. For example, one of the benefits to this strategy is that selling a family-owned business to a relative will keep the business in the family. Oftentimes this decision best suits the emotional preferences of the owner. A major risk is that the family member will fail to operate the business successfully, and this point underscores the importance of only transferring ownership to a family member that is ready for the task. A second option is what is known … [Read more...]

Understanding the Modern Buyer

A key part of the American Dream is the notion of being financially independent and controlling one’s own fate. While times have changed, the idea of the American Dream is alive and well. Entrepreneurs have long realized that one of the quickest ways of achieving this dream is to own a successful business.  The majority of today’s buyers are well educated and come from the corporate world; however, they are typically not versed in the business buying process. Since these buyers are coming from the corporate world, they are fact-driven, meaning that they want to see the numbers and will pay attention to details both large and small. You can expect these buyers to want to see all necessary supporting documents. They will want to verify everything themselves. Additionally, you can expect them to employ many outside advisors. Summed up, today’s buyer is not an easy sale. Another key fact about the modern buyer is that they are often what can best be termed as “event driven.” These are … [Read more...]

The Top Four Reasons Why Deals Fall Apart

It takes a lot of work to buy or sell a business. When a once promising deal is not successful, this can be due to a wide array of reasons. However, understanding the reasons why a deal can fall apart in advance can serve to dramatically increase your odds of success. Some of the reasons that deals fall apart are reasonable, while other reasons, to be blunt, are unreasonable. Let’s take a look at four common reasons that are seen in the world of business brokerage.  Reason 1- Financial Issues on the Buyer’s End  One of the most common reasons that deals fall apart is that buyers simply can’t find the needed financing. Working with a business broker or M&A advisor is a way to safeguard against this outcome, as an experienced brokerage professional knows how to pre-screen prospective buyers to increase the odds of success from a financial standpoint. Reason 2 – Lack of Financials on the Seller’s End  A second reason that deals fall apart is that the seller doesn’t have all of their … [Read more...]

6 Critically Important Aspects of Due Diligence

Performing due diligence as a part of your company’s annual review is a smart move and one that can help your business in a range of ways. Through this means, if the day comes that you need or want to sell, then you’re ready to go. There are six key areas of due diligence that you’ll want to consider. These are aspects that most serious buyers will consider when buying a business.  You can expect any savvy buyer to focus on the following during due diligence if they are truly interested in acquiring your business. Problems in any of these areas could spell serious trouble in the sales process. Legal Marketing  Environmental  Operational Management  Employees Legal Issues In terms of legal issues, you’ll want to carefully evaluate whether or not your contracts and agreements are all current. Issues such as copyrights, trademarks and patents should all be examined. Most importantly, if there is any pending litigation it would be best to resolve the matter if possible. Likewise, if … [Read more...]